ANTD.VN - Banks that link non-compulsory insurance products to the provision of banking products and services in any form as prescribed by the Law on Credit Institutions will be fined VND400-500 million.
The State Bank is seeking comments on the draft Decree replacing Decree No. 88/2019/ND-CP dated November 14, 2019, regulating administrative sanctions for violations in the monetary and banking sector (amended and supplemented).
Accordingly, the draft adds sanctions based on the Law on Credit Institutions 2024.
Notably, the draft proposes a fine of VND400-500 million for one of the following acts: linking non-mandatory insurance products to the provision of banking products and services in any form as prescribed in the Law on Credit Institutions; illegally intervening in banking activities and other business activities of credit institutions and foreign bank branches;
Conducting acts of competition restriction or unfair competition that risk causing harm or damage to the implementation of national monetary policy and the safety of the credit institution system.
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Banks are not allowed to "force" customers to buy optional insurance when granting credit. |
In addition, many other violations are also subject to penalties such as: A fine of 20-30 million VND for failing to notify or notifying the State Bank of the appointment of a person to hold the position of legal representative of a credit institution in violation of the provisions of the Law on Credit Institutions.
A fine of 40 - 50 million VND shall be imposed on the act of failing to meet or maintain sufficient satisfaction of the requirements for opening domestic branches and transaction offices of commercial banks.
Regarding the review of the provisions of the Law on Anti-Money Laundering 2022 and documents guiding the Law, the draft Decree removes all quotes from the provisions of the Law on Anti-Money Laundering to avoid cases of amending, supplementing, replacing legal documents and amending sanctions in accordance with the provisions on responsibilities, obligations, and prohibitions in the Law on Anti-Money Laundering and documents guiding the Law.
Instead, the draft stipulates a fine of VND150-200 million for acts of not developing a risk management process, not classifying customers according to risk level, or classifying customers according to risk level not in accordance with the provisions of the Law on Anti-Money Laundering, the Law on Anti-Terrorism and the law on preventing and combating the financing of proliferation of weapons of mass destruction.
A fine of VND 150-200 million shall be imposed for failure to comply or incomplete compliance with regulations related to foreign individual customers with political influence as prescribed in the Law on Anti-Money Laundering.
Failure to comply or incomplete compliance with regulations related to correspondent banks when establishing relationships with partner banks to provide banking products, services, payments and other services to partner banks as prescribed in the Law on Anti-Money Laundering;
Failure to implement or incomplete implementation of regulations related to the responsibilities of reporting entities when providing new products and services, existing products and services applying innovative technology as prescribed in the Law on Anti-Money Laundering.
Fine of 200-300 million for failure to supervise certain special transactions as prescribed in the Law on Anti-Money Laundering.
Source: https://www.anninhthudo.vn/de-xuat-muc-phat-tien-voi-ngan-hang-ep-khach-mua-bao-hiem-post597064.antd
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